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Executive Summary
The Blue Turtle Clothing Company was founded in May 2003 by Carlie Melcher. It sold
women’s causal and athletic wear mainly for beach wear, and along with complementary
products such as kids clothing, hemp necklaces and emu oil. Carlie Melcher graduated
from Conestoga College in business administration and marketing program, after two year
marketing work she decided to start her own business and attended entrepreneurial training
program for almost one year, and finally open BTC company and started operation with
her mother.
After one year operation, BTC did not receive any income but got a over $2000 loss due to
low gross profit with high expense. Because it store mainly targeted customers who came
to the beach for vacation during summer season, so its seasonally operation cannot cover
high yearly rent expense. After situation analysis and marketing research, I found that
Sauble Beach actually is a four season tourist place and come up with 5 alternatives:
1 – Increase price mark up and expand products selection.
2 – Pursuing home parties strategy.
3 – Explore fitness clubs.
4 – Expand its store to London.
5 – Status Quo.
Alternative 1 and 2 were recommended as the main reasons for increase price mark up can
directly generates more sale revenue and expand products selection can ease the strain
seasonality to offset the store close time’s loss and increase the store’s utilization. Pursuing
home parties strategy is the most less cost marketing activities and since BTC already has
some experience about it, it would be more easy to control and less risk.
If the recommendations are not successful then explore fitness clubs option should be
adopted. This option could increase the awareness and ease the strain seasonality at the
same time.
Table of Content
Problem
Statement.................................................................................................................... 2
Company
Objectives................................................................................................................. 2
Company
Background.............................................................................................................. 2
Situation
Analysis..................................................................................................................... 3
Strengths........................................................................................................................... 3
Weaknesses....................................................................................................................... 3
Opportunities.................................................................................................................... 4
Threats.............................................................................................................................. 4
Market
Analysis........................................................................................................................ 4
Segmentation.................................................................................................................... 5
Competitive Analysis........................................................................................................ 7
Financial
Analysis..................................................................................................................... 7
Key
Factors............................................................................................................................... 8
Key Opportunities............................................................................................................. 8
Key Success Factor........................................................................................................... 8
Key Uncertainties............................................................................................................. 9
Alternatives..............................................................................................................................
9
1 – Increase price mark up and expand products selection.............................................. 9
2 – Pursuing home parties strategy ................................................................................. 10
3 – Explore fitness clubs.................................................................................................. 10
4 – Expand its store to London ....................................................................................... 11
5 – Status Quo.................................................................................................................. 12
Recommendations....................................................................................................................
12
Action Plan..............................................................................................................................
14
Contingency.............................................................................................................................
15
Reference.................................................................................................................................
16
Exhibit 1 ..................................................................................................................................
16
Exhibit
2 ...................................................................................................................................17
Exhibit
3 ...................................................................................................................................17
Exhibit
4 ...................................................................................................................................18
Exhibit
5 ...................................................................................................................................18
Problem Statements
In August 2004, it is the second summer of operation in Sauble Beach of The Blue Turtle
Clothing Company. Carlie Melcher the owner and the sole owner of the small company,
she was planning the future marketing strategy. The Income Statement shows that the
company has not received income (net loss $2,117) from seasonal operation store in
Sauble Beach or annual sales of two London, Ontario fitness clubs. She wondered whether
BTC should expand its marketing strategy to improve company performance.
Company Objectives
The Blue Turtle Clothing Company just founded two years, from its first year operation,
company did not generate any profit but have net loss $2117. At the first, Carlie, the owner
of BTC want to improve company’s performance to earning profit by making new
marketing strategy. And the other, company’s objective is to provide at least $1400 per
summer month profit.
Company Background
The owner of Blue Turtle Clothing Company, Carlie Melcher, has a diploma of business
administration at Conestoga College and had a tow-year work experience in marketing in
London. But she did not enjoyed her previous jobs and thought her skills were being
underutilized.
In May 2003, Blue Turtle Clothing Company was founded and began operations. She
designed the logo herself, and operating the company with her mother. BTC was located
off the main strip, and opened seven days a week.
The company sold women’s causal and athletic wear, along with complementary products
such as kids clothing, hemp necklaces and emu oil.
Situation Analysis
Strengths
Only one partner is her mother, who did not wish to be compensated.
The owner has a well education background and was trained in entrepreneurial program.
Simple operation store do not have many others operation expense.
Products are basically all causal clothes which are easy store and move.
Already had partnership with two fitness clubs.
BTC was not located on main strip avoid many other competition.
Has a wide targeted customers group.
Weaknesses:
Store operates seasonally.
Had a net loss from last year’s operation.
Do not have many employees resource.
Solo owned company does not have a strong financial support.
Products retail price mark up was low.
Strayed from its planned price strategy many times in first year, often offering discounts.
No distinct advantage over the other clothing stores.
Opportunities:
Sauble Beach was located near to Toronto and attracts as many as 60,000 tourists a week
during peck summer season.
London is a big city with a large young student population.
The retail sector had experienced significant growth in London recently.
The whole retail industry keep a slow but steady growing pace.
Sauble Beach was voted “Best Beach in Ontario" in 2003.
Most competitors are targeted only young girls in late teens and early 20s.
Threats:
Fierce competition with eight stores carried well-known brands .
Sauble Beach has numerous seasonal retail outlets.
Some of the retail outlets catered everyday needs products not only offer seasonal beach
products, they have more income resources.
Many indirect competitors offered same even better products with valued price.
Market Analysis
The pace of growth in the retail industry in Canada had slowed from seven per cent in
1997 to 1.1 per cent in 2001, but showed signs of progress in early 2004 with sales growth
of at least one per cent per month in each of January, February and March. Clothing stores
experienced sales growth of 6.8 per cent from April to May 2004, which represented a 1.3
per cent increase over sales for May 2003.
